Not all successful businesses are corporations. Many individuals have found success with a franchise due to the innovative business design. Franchises are not without hiccups and have to compete with other models out there. Franchising appears to be a good idea currently because consumer spending is strong, the economy is on the upswing, and it’s easier to get financing. The International Franchise Association’s growth forecast estimates that within the next year, 11,500 more franchises will open up for a grand total of 745,000 establishments. This is an overall increase of 1.6 percent, comparable to last year’s 1.7 percent growth. Here are the top three reasons for franchise expansion.

Changing Demands

Consumers are focused on what companies do beyond making a profit, by patronizing businesses that focus on helping causes. Companies have responded to the demand by releasing information on sustainability, re-branded their image, and launched or support charities to show they care about the greater good of society. Franchises keep management in the towns and cities where the business is located instead of answering to corporate. Franchises have the ability to focus their efforts on the local community and ways to help. The added human factor in the franchise model is essential for success.

Millennials

Whether you love ‘em or not, millennials are up and coming. They like to frequent cause-driven businesses and are fiercely independent. These are both necessary for franchising because a new owner needs to be driven and independent to succeed. The company name and product are the same as the organization as a whole, but each store is independently owned and operated for more freedom in managerial style. This applies whether it’s a fast food franchise or a cell phone repair franchise.

Josh Cohen, CEO and founder of the junk removal franchiseJunkluggers, states that “Millennials are some of our favorite franchise partners because they can be motivated by the company’s values and experience great pride of ownership.” Young professionals aim to produce more and are more efficient if their work has a selfless outcome.

Job cycle

Automation is helping franchises because it saves money and brings in talent from higher level workers. The demand for workers is beginning to lie in areas such as management, creativity, and organization. Cohen notes that franchising allows you to work with a partner without sacrificing the quality of service. With more high-skilled workers in the market, franchising fits right in.